Front loaded PPI

Izzyk

What is it which means front loaded PPI on a loan is more likely to be successful? I had it on most of my loans which were consolidated on many occasions with Lloyds to pay off other debts. I was refunded part of the PPI on the loans I had paid off and then it was put on the new loan.

dunstonh

What is it which means front loaded PPI on a loan is more likely to be successful?

There are three methods.
1 - front loaded with interest (bad)
2 - front loaded but no interest charged (not bad but not ideal)
3 - monthly premium (the ideal method and how it ought to be - part of the reason why MPPI has so few upheld complaints)

Front loaded with interest costs a lot more. Why pay interest which you would not have paid had it been monthly premium? Plus, circumstances change and monthly allows you to stop payments if you no longer qualify. However, single premium does not.